Quiz 1 Business Policy and Strategy
Chaos
Low and Low Top management and board of directors, both do not control/decide
What are the four phases of strategic managment
Basic Financial planning, forecast-based planning, externally oriented planning, and strategic management
Agency Theory
agents not willing to bear responsibility unless substantial amount of stick, protect ownership, risk adverse, external
What is strategic management?
communicate with lower-level managers for input
Corporate Governance
determine direction and performance of corporation
objective
end results of planned activity
What is the strategic management process
environmental scanning, strategy formulation, strategy implementation, evaluation and control
Evaluate and Influence
examine ideas and offer suggestions
Initiate and Determine
examine ideas and offer suggestions
outside directors
executives of other firms but are not employees of the board's corporation (80%)
Marionette
high board of directors low top management, board directs managers
Partnership
high top management high board of directors, work together
Stewardship Theory
insiders tend to identify with corporation
Strategy formulation
investigation, analysis, and decision making that provides criteria to attain competitive advantage
Environmental scanning
monitor, evaluate, disseminating information from internal and external environments that assist analysis of corporation
inside directors
officers or executives employed by the corporation
Vision
organization would like to become
minitor
know developments inside/outside the corporation
Mission
purpose or reason for organization existence
strategic implementation
put into action through development of program budgets and procedures
What is forecast-based planning
propose five year plans
What is financial planning
propose next year's budget
evaluation and control
results are monitored and compared with desired performance
What is Externally oriented planning
strategic planning system
Codetermination
Form of corporate governance that requires a typical management board and a supervisory board and that allows management and employees to participate in strategic decision making.
Board of Directors responsibilities
1. Effective board leadership including the processes, makeup and output of the board 2. Strategy of the organization 3. Risk vs. initiative and the overall risk profile of the organization 4. Succession planning for the board and top management team 5. Sustainability
Enterpreneurship
High top management low board of directors, make decisions on own